Though Progressa is proud of our Canadian roots and our part in growing the fintech community in Canada, we would be remiss not to take note of the ongoing political brouhaha coming to a head among our neighbours to the south. With Republican candidate Donald Trump seemingly finding the capacity to offend more and more with each new statement, we thought it would be interesting to unpack one of his personal finance boasts: namely, that “a small loan of a million dollars” from his father, Fred Trump, was what he needed to kickstart the empire he has since built around his name and brand.
Setting aside the fact that this loan was made between Trump and his father, rather than in the offices of a financial institution, it is unlikely that anyone looking to integrate their personal finances into the opening of a new business venture in today’s economic world could independently secure “a small loan of a million dollars” with such ease. For modern-day individuals looking to grow their finances, Mr. Trump’s assertion that his “whole life has been a ‘no'” rings hollow in the face of major bank attitudes to lending.
What’s more, over his long career, Donald Trump has frequently stumbled by amassing mountainous debt – possibly over $1 billion USD according to some analysts, and mostly concentrated in mortgages on key properties in New York City. This is a prime example of the fact that it’s not the size of the loan that matters, but how the finances are managed.
Of course, on the magnate-level scale of Donald Trump, such massive debt may not prevent the accumulation of significant personal wealth. However, for the average person, looking to take out the largest loan they can find from a given source may not always be the best option. Focusing on a balance and set of terms that are affordable and able to be situated within a reasonable repayment time-frame are the two most important qualities of a healthy loan.